Weekly Company gathered the following information for the year ended December 31:Direct labor cost incurred for the year$180,500Estimated manufacturing overhead costs$269,100Estimated direct labor cost$214,900Work in process inventory, Dec, 31$51,000Finished goods inventory, Dec. 31$60,100Cost of goods sold$141,300Estimated direct labor hours260,300What would the predetermined manufacturing overhead rate for the year be using direct labor cost as the allocation base? Question 46 options: 103% of direct labor cost 84% of direct labor cost 119% of direct labor cost 125% of direct labor cost

Predetermined Overhead Rate: At the start of the accounting period, a predefined overhead rate is…

Answered: Weekly Company gathered the following…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Weekly Company gathered the following information for the year ended December 31:

Direct labor cost incurred for the year	$180,500
Estimated manufacturing overhead costs	$269,100
Estimated direct labor cost	$214,900
Work in process inventory, Dec, 31	$51,000
Finished goods inventory, Dec. 31	$60,100
Cost of goods sold	$141,300
Estimated direct labor hours	260,300

What would the predetermined manufacturing overhead rate for the year be using direct labor cost as the allocation base?